PROMOTION4.01:

Acquire a foundational knowledge of promotion to understand its nature & scope

TUESDAY’S WARM-UP Choose a product you’ve purchased within the last several months. Television

What made you want or need to buy it? I was moving and didn’t want to transport television. Plus desire to get new

television. How did you hear about the product?

I went to Best Buy & I asked a friend How did you know where to buy product?

Ads in paper & reputation of company How did you know about the price or how much it would cost?

Ad in paper & sales clerk

TUESDAY’S OBJECTIVES

a. Define the term promotion.b. List users of promotion.c. Describe the benefits of using promotion.d. Describe the costs associated with the use of promotion.e. Describe types of promotional objectives.f. Discuss the relationship of promotion and marketing.

PROMOTION

Define the term promotion. Any form of communication a business or organization uses to inform, persuade, or remind people about its products and improve its public image

Marketing communication based on sending a message to a target market

Designed to assist the customer in making a purchase

Encourages customers to buy or form an opinion about goods, services, or ideas

WHAT DOES THIS MEAN TO YOU Think of a commercial Describe it on piece of paper Explain what it communicated

to you

A good advertisement will use jingles, images, or a story to get your attention

Most commercials accomplish this through animals, songs, & physical comedy

Its not about the immediate response. Its about the impression.

http://www.youtube.com/watch?v=n5ik0x9WnuM Doritos (Dress up) Sketchers Pepsi KIA Sorento Doritos (Goat) Doritos (Baby) Chevy Best Buy Doritos (Dog) Pepsi Max

At&t http://www.youtube.com/watch?v=GvWvaySJoGE

Old Navy http://www.youtube.com/watch?v=b8kIOsxq6cU

COMMERCIALS Best Buy

http://www.youtube.com/watch?v=YdBsWRDRNKI Best Buy

http://www.youtube.com/watch?v=uzpm1KzTYNA Go Pro

http://www.youtube.com/watch?v=9mGzoG0CA5M Motorola Moto X

http://www.youtube.com/watch?v=2sS8QQqlLOQ American Airlines

http://www.youtube.com/watch?v=Bag2TD8OjZo Buick

http://www.youtube.com/watch?v=8B1Kt5CPvwc

PROMOTIONS Are there any other promotions you have seen recently that got your attention?

USERS OF PROMOTION

Any institution that has something to sell uses promotion in some form Businesses

Multinational firms can spend large sums on securing high-profile celebrities to serve as corporate spokespersons

Small business owner passing out business cards

Government Agencies Special interest groups Producers Intermediaries (Middlemen) Individuals

Political Candidate

ETHICAL PROMOTION?

ASSIGNMENT

Individuals such as political candidates use promotion to convince the public to agree with them or to vote for them.

Sometimes, along with positive promotions about themselves, political candidates or parties include negative advertisements

about their opponents in their promotional campaigns.

These promotions aren't illegal, but are they ethical? What do you think

Dave Wilson http://

www.khou.com/news/local/White-guy-elected-by-pretending-to-be-black-grabs-international-attention-231827141.html

DAVE WILSON

BENEFITS OF USING PROMOTION

Describe the benefits of using promotion.Increase salesStrong positionIncreases customer loyaltyIncreased product/company awarenessBetter informed, more satisfied customersIncreased employment opportunitiesIncreased Media support

PROMOTION

Describe the costs associated with the use of promotion Advertising fees

Local channels: $200 - $1,500 to create a commercial National Ad: $342,000 Super Bowl: $4 Million for 2013 commercial American Idol: $475,000

Costs for sales promotions and contests

Salaries for promotional and sales staffs. Average salary is $63,000/year 3% higher than most professions

SPORTS ILLUSTRATED AD COSTS

CONTEST INSURANCE

PROMOTIONAL OBJECTIVESDescribe types of promotional objectives.

Objective Purpose

InformNew productsProducts with new usesEducate about product usesAbout any product or idea

Persuade

Certain views or opinions.Some sort of action in customersPurchase their products over competitive productsNew company image

RemindThe company actually existsEstablished productsEstablished companies

WHAT ARE THESE ADS DOING?

PROMOTION

Discuss the relationship of promotion and marketing.

Promotion is the marketing function needed to communicate information about goods, services, images, and/or ideas to achieve a desired outcome.

It is the marketing communication that involves sending a marketing message to a target audience.

ASSIGNMENT Objective #1: Promotion

Describe a commercial or ad that they have seen recently, and explain what the commercial or ad communicated to them.

What makes an advertisement interesting or effective to you?

Objective #2: Users Users of promotion. Ethics of political ads What does your school sell? Universities? Doctors office? Politicians?

Objective #3: Benefits Of all the benefits of promotion listed; which do you think is most effective?

Explain answer.

ASSIGNMENT Objective #4 Costs

Look at costs of super bowl commercials http

://adage.com/article/special-report-super-bowl/game-time-decision-super-bowl-worth-4-million/245091/ http://adage.com/article/special-report-super-bowl/super-bowl-ad-chart-buying-super-bowl-2014/244024/

Wonderful Pistachios might go with Miley http://adage.com/article/special-report-super-bowl/doritos-crash-super-bowl-ad-contest-global/244121/

Visit http://www.youtube.com/doritos and pick who you think will be named a semi-finalist

Dodge 2014 Commercial: http://www.inboundsales.net/blog/bid/57539/What-is-the-Return-On-Investment-of-a-Super-Bowl-Ad

Objective #5: Persuade, Remind, & Inform Find an advertisement in a magazine that accomplishes each of these three Label ad & explain why it is what it is

WEDNESDAY4.01

Acquire a foundational knowledge of promotion to understand its nature and scope.

Objective B: Explain the types of promotion

WARM-UPWhat are the three objectives of a promotion?

Objective PurposeNew productsProducts with new usesEducate about product usesAbout any product or idea

Certain views or opinions.Some sort of action in customersPurchase their products over competitive productsNew company imageThe company actually existsEstablished productsEstablished companies

WEDNESDAY’S OBJECTIVES

a. Define the following terms: product promotion, primary product promotion, secondary product promotion, institutional promotion, public service, public relations, and patronage.

b. Identify types of product promotion.c. Describe the uses of product promotion.d. Identify types of institutional promotion.e. Describe uses of institutional promotion.f. Discuss the advantages of promotional activities.g. Discuss the disadvantages of promotional activities.

KEY TERMS Product Promotion: used to convince potential customers to buy products from it instead of from a competitor Inform customers about features & benefits Tells where those products are sold Create awareness Build a reputation for the product Encourage interests

Can be in the form of advertisements, coupons, salespersons efforts to persuade, trade shows, commercials, infomercials, etc…

USES OF PRODUCT PROMOTION

Describe the uses of product promotion. Creates consumer awareness of a good or service Informs customers about product features Encourages interest in and inquiries about a good

or service Informs consumers where a product can be

purchased Builds a reputation for a product Creates excitement and motivates retailers and

salespeople

KEY TERMS

Primary product promotion: The aim is to stimulate demand or interest in an entire class of products.

Emphasis is on the product and its uses, and not on a particular brand.

Competition is between the two different industries. Example: Beef v. Pork

This type promotion useful when introducing a new concept or a totally new product.

KEY TERMS

Secondary Product Promotion Selective product promotion used to stimulate demand for a specific brand or product

Product class is already established so promotion is geared towards a specific brand

Example:Bordon Milk or Deans Milk can promote their brand because the American Dairy Association & Dairy Council have already promoted and established the industry so that primary demand exists.

KEY TERMS

Institutional PromotionCorporate advertising that does not attempt to sell a product

Expensive method of advertising

Goal is to create a favorable image of the company

Occurs when a company sponsors or partners events, charities, or causes that build goodwill

KEY TERMSPublic ServicePromotions that are done to promote issues frequently considered to be in the best interests of the community at large

Public Service Announcements (PSA)Community Service Announcement (CSA)Can be done via tv, radio, or print ads

Texting while driving Drug Use Be active: Read, Play Sports, School, etc.. Local companies encourage local action.

http://content.time.com/time/specials/packages/article/0,28804,1920454_1920455_1920449,00.html

KEY TERMS

Public Relations- Provide a service for the company by

giving the public and the media a better understanding of how the company works

- Can be proactive or reactive

- Designed to put a positive spin on company actions

- Use media outlets to explain situations- Create press releases- Contact news outlets- More credible than paid advertising

KEY TERMSPatronage Promotions designed to promote a firms prestige or features Companies position themselves as prestigious in the minds of consumers Leads to continued support, loyalty and repeat business of

customers.

Customers (patrons) are satisfied with the company and trust and/or have confidence in company based on past experiences.

Patronizing makes it easy for a company to sell its products.

ACTIVITIES Activity 1 Locate one example each of institutional and product promotion in magazines or on

the Internet. Affix the promotions to paper and label each by its type of promotion. Explain why you believe it is institutional or product promotion.

 Activity 2Of the “Top Ten” Public Service Announcements viewed; which was most effective and why? Choose an issue in society and create a Public Service Announcement for this topic. Activity 3 Choose any company to create a press release for. You will be graded

based on content as well as formatting. Both are crucial in advertising.